Chain Stores Decline in NYC for Fifth Time in Seven Years

New York City still runs on Dunkin’, but its reliance on chain stores continues to decline.

The number of chain stores and restaurants declined by 1.3 percent this year, according to the Commercial Observer. It was the fifth time in seven years the total dropped, according to the annual “State of the Chains” report by the Center for an Urban Future.

The decline wasn’t as stark as the prior year, when there was a 3.4 percent drop in chain stores. The overall net decline this year was 109 stores, leaving slightly more than 8,000 across the five boroughs.

Merchandise retailers — selling pharmaceuticals, cellphones, clothes, cosmetics and the like — struggled the most in New York City this year. Restaurant chains, on the other hand, posted a 1.6 percent increase this year to more than 4,000 locations, paced by fast-food and fast-casual operations such as Popeye’s and Naya.

Metro by T-Mobile took the biggest hit of the year, shedding 30 stores in New York City. A close second was Duane Reade, which reduced its store count by 22. Subway, Rite Aid, 7-Eleven, AT&T and Baskin-Robbins were also among the biggest losers.

While Baskin-Robbins — a frequent partner of Dunkin’ for joint storefronts — was on the down side of the ledger, Dunkin’ added seven stores this year and remained the city’s largest retailer by far with 626 locations.

Chains disappeared the most this year in Midtown West, the East Village and Gramercy Park. They became more visible in the Garment District, the Staten Island Mall and Brooklyn Heights.

The report tracked more than 450 national retailers. A subset of the 13 largest retailers tracked by CUF saw a decline of 797 stores in the past five years.

New Yorkers have long fretted about the presence of chain stores in the city’s commercial strips, with some saying their rise in the 2000s justified imposing commercial rent control, but such a measure has never come to pass. The Center for an Urban reports of recent years have revealed the fears to be unjustified.

— Holden Walter-Warner